Real estate and the new industrial revolution: a growth strategy to achieve \600 trillion nominal GDP
a)Current issues of real estate market
・Real estate values are undermined as housing asset values are falling below the amount of accumulated housing investments by more than 500 trillion yen. Urgent measures are needed to protect, renew and utilize real estate assets.
・Information asymmetry in real estate transactions hinders further growth of the market.
・Insufficient political initiatives to alleviate structural problems that impede the promotion of real estate regeneration and utilization
b)The expansion of real estate market through data utilization should be firmly placed at the center of Japan’s growth strategy, for which the following measures are recommended.
Suggestion 1: Set up a “real estate information bank”
Suggestion 2: Review evaluation methods to maximize real estate uses
Suggestion 3: Establish real estate turnaround methodology
c)Expected impact of the proposed measures
・Recovery of the \500 trillion worth of the “lost building values” or the difference between housing asset values and the amount of accumulated housing investments
・ Economic potential of adding \30 trillion to GDP
・ Urban innovation and revitalization of downtown areas, through which social issues relating to urbanization can also be addressed